on of stockholders' equity at December 31, 2017.
Journalize and post treasury
Excess of Par-Common Stock stock transactions, and
2017: Common Stock ($5 par) $500,000, Paid-in Capital in
P13-24 Fechter Corporation had the following stockholders' equity accounts on January 1,
$200,000, and Retained Earnings $100,000. In 2017, the company had the following trea-
sury stock transactions.
prepare stockholders' equity
section.
(LO 3, 4)
Mar. 1 Purchased 5,000 shares at $8 per share.
June 1 Sold 1,000 shares at $12 per share.
Sept. 1 Sold 2,000 shares at $10 per share.
Dec. 1 Sold 1,000 shares at $7 per share.
Fechter Corporation uses the cost method of accounting for treasury stock. In 2017, the
company reported net income of $30,000.
Instructions
(a) Journalize the treasury stock transactions, and prepare the closing entry at December 31,
2017, for net income.